As part of a bold new energy policy, the Danish government has exempted electric cars from all taxes until 2012. It’s all part of the Scandinavian country’s aggressive plan towards renewable energy. In March of this year Denmark’s Dong Energy in a partnership with a San Jose company, announced plans to build a 20,000 node recharging grid to be completed in 2011. That grid will be mostly powered from renewable wind energy.

The new tax credit has caused a rush of car makers looking to release electric cars for the favorable economic conditions in Denmark. Some of the car makers entering the market are Mercedes Benz, Saab, Volvo, France’s Axiom, China’s BYD, and America’s Tesla Motors.

It should be interesting in the next coming years to see if Denmark becomes the first country to have a real renewable energy powered car fleet.

One positive note about the latest massive bailout bill that congress is set to re-vote on Friday: buried deep are tax credits for renewable energy sources like solar, wind and geothermal. These critical tax breaks could renew the solar incentives that were set to expire for another 8 years. There was talk that if they were allowed to expire the solar industry would be devastated. If the bill passes, the solar industry should be revitalized.

Of special interest to our readers, there are specific credits for plug in electric vehicle buyers. Based on the kWh of the batteries, this tax incentive could be up to $7,500. That could be applied towards cars like the GM Volt or the Dodge EV both coming in 2010. Which should make these cars even more appealing and affordable.